This is a key point for Microsoft, especially given the Competition and Markets Authority (CMA) in the UK appears to have counted all Game Pass users as cloud users.
Xbox Game Pass Ultimate includes Xbox Cloud Gaming, but Dr. Bailey claims not many people used it:
What I found was that of those Game Pass ultimate gamers, a very small fraction of them access the cloud gaming feature. Their proportion of game time hours through cloud gaming are even smaller. When they access that cloud gaming feature, the overwhelming majority of them are accessing it at least once through a console
This aligns with what Xbox’s Sarah Bond testified that most Xbox Cloud Gaming users are using the service to try games before they download them. Judge Corley cuts in to ask if it aligns with Bond’s testimony and Dr. Bailey agrees.